The vicious debate over a free concert at Tehran’s most iconic square—and its eventual cancellation—has laid bare not only the rulers’ fear of spontaneous crowds but also deep rifts among Iranians themselves.
A fresh hike in bread prices has deepened the strain on many Iranians, prompting warnings from a prominent economist that unchecked inflation could spark unrest.
Bread remains the cornerstone of an affordable meal, but even that is slipping beyond reach as prices surge.
“If inflation remains unchecked … Iran could witness a bread riot,” economist Hossein Raghfar told the moderate outlet Rouydad24 this week, warning that inaction could have consequences far beyond the economy.
“The lack of planning, combined with external pressures, could leave the country vulnerable to regime change efforts by foreign powers and threaten Iran’s political and social stability,” he added.
Several Iranian outlets linked the latest hikes to the psychological impact of the reactivation of the “trigger mechanism” and the snapback of pre-2015 sanctions.
Raghfar said poor crisis management has already driven up the cost of foreign trade and imports, predicting further increases and unrest as pressures mount.
Bleak outlook
Iran’s Chamber of Commerce last week projected a worst-case scenario of a 60% currency plunge, inflation at 75%, and unemployment at 14% in the coming months if sanctions are reinstated.
The Chamber later retracted its forecasts, reportedly after a visit by security agencies to its Tehran offices.
Raghfar echoed the concern without citing the forecast. “The snapback of sanctions will severely impact Iran’s international trade and shipping,” he said. “At the same time, Iran will face increased restrictions on international banking.”
Tehran is failing to address mounting challenges, Raghfar argued, accusing the government of devising policies that often appear to align with the aims of those seeking to topple the Islamic Republic.
President under fire
Some critics have been more specific.
Moderate politician and former Tehran mayor Gholamhossein Karbaschi told Khabar Online that President Masoud Pezeshkian was wasteful and misplaced his priorities.
“When he visits shrines or the graves of martyrs, he is accompanied by a massive entourage … of 1–2,000, whose presence is unnecessary and has no meaningful impact on the president’s security,” Karbaschi said.
“The funds allocated to certain religious propaganda organizations exceed the annual budgets of entire ministries,” he added.
Karbaschi omitted that most such organizations are linked to the office of the supreme leader and lie beyond any administration’s remit. Pezeshkian himself underlined this limited authority on Wednesday.
“Why should the country’s resources be handed over without reason to institutions and bodies that have no benefit or usefulness?” he asked at a conference.
Firsthand accounts reveal how severe water and electricity shortages are disrupting daily life across Iran, with blackouts causing life-threatening accidents and hardship for vulnerable families.
In one video, a woman with a broken leg, filmed in a hospital, pleads with officials to step aside if they cannot provide basic services.
“Why in the 21st century should we have power outages?” she asks. “If you can’t run the country properly, you better get lost.”
She explains that her diabetes requires overnight monitoring before surgery.
Another clip shows a woman describing repeated falls in the dark. Pointing to a cane on the floor, she says: “Now I have to move around with this. I swear to God I don’t even have a single rial to go to the doctor and get an X-ray.”
Other footage shows a man trapped in an elevator after a sudden outage, urging that buildings be equipped with emergency systems to prevent such dangers.
Daily disruptions
From Sari to Mashhad, residents describe routine blackouts at night and during business hours.
A young man in Sari says the power cuts every evening from 9 to 11 p.m., while a merchant in Mashhad films a bazaar left in darkness.
“Look at the bazaar,” he says. “How can these people make a living and pay their rent?”
In Tehran, a customer records shoppers enduring stifling heat in a hypermarket after air conditioning and lighting failed.
“This place used to be cool and comfortable, but now everything is off,” he says. “People are forced to shop in this unbearable heat.”
Official response
Energy Minister Abbas Ali Abadi has promised improvements.
“Soon the water situation will improve, the gas situation will improve, and weather conditions will also cooperate,” he said this week, before adding the telling qualification: “God willing.”
But Iran’s reliance on decades-old thermal power plants—still providing over 80% of electricity—alongside shrinking hydroelectric capacity due to prolonged droughts has left the grid deeply vulnerable.
Spring hydro output has collapsed from about 6,500–7,000 megawatts to only 2,500.
Public embarrassment
The crisis has also spilled onto national television.
One widely shared clip shows a state broadcast plunging into darkness shortly after a lawmaker claimed an alleged Israeli pilot’s “confession” would soon air.
Israel’s Foreign Ministry mocked the scene on X, posting in Persian: “Just make sure the power doesn’t go out in the middle of broadcasting the confession.”
Tehran’s sharpening nuclear clash with the West and embrace of Beijing and Moscow have brought it to a crossroads, where choices this month may decide the future of Iran’s rulers and the ruled.
The formal start of the UN “snapback” process to restore sanctions, the latest critical report by the International Atomic Energy Agency (IAEA), and President Masoud Pezeshkian’s high-visibility diplomacy at the Shanghai Cooperation Organization (SCO) summit together mark a decisive moment for Tehran.
The most immediate challenge is the likely restoration of UN snapback sanctions before 28 September.
European governments argue the trigger is Iran’s sustained non-compliance with key limits in the 2015 Joint Comprehensive Plan of Action (JCPOA) over the past six years. Tehran rejects that position, insisting the E3 forfeited standing by failing to deliver promised economic normalization after Washington’s 2018 withdrawal.
Whatever the legal briefs, reinstated measures would effectively return Iran to a Chapter VII-related sanctions framework, with all the familiar consequences: renewed constraints on arms transfers, reinforced financial isolation, and fresh layers of economic restrictions that have already strained household incomes and the broader investment climate.
Scrutiny intensifies
New IAEA findings have sharpened scrutiny of Iran’s program.
The agency signaled fresh shortfalls in cooperation, pointing to unexplained inventories of enriched uranium at levels exceeding JCPOA caps.
International Atomic Energy Agency (IAEA) Director General Rafael Grossi visits Iran's nuclear achievements exhibition, in Tehran, Iran, April 17, 2025.
A confidential tally circulated to member states indicated Iran holds about 441 kilograms of uranium enriched to 20% or higher – enough, by the agency’s rule of thumb, to yield material for around ten nuclear devices if further refined.
Director General Rafael Grossi has said there is no sign of diversion, but emphasized the need for verification and timely documentation – something Iranian officials have yet to provide.
Rather than escalate immediately, the Secretariat has kept contacts open in hopes of restoring routine access. Two reports to the IAEA’s 35-nation Board of Governors underline the urgency: inspections must resume “without delay,” and the buildup of highly enriched stocks remains a “serious concern.”
Eastward turn accelerates
It is against this tightening sanctions and verification backdrop that President Pezeshkian’s China tour looms large.
Over a week of meetings – most prominently with Xi Jinping in Beijing and Vladimir Putin in Tianjin – Tehran sought to translate a long-advertised “Look East” doctrine into concrete political and economic ballast.
Iranian officials pressed for more than sympathetic rhetoric: Moscow and Beijing are backing Iran’s claim that snapback is legally void but, crucially, Tehran hopes they avoid implementing any reimposed UN measures.
For China and Russia, the ask is non-trivial. Skirting U.S. and European unilateral sanctions is one thing; openly discounting UN obligations is another, with implications for their global positioning.
Russian President Vladimir Putin and Iranian President Masoud Pezeshkian attend a ceremony to sign an agreement of comprehensive strategic partnership between the two countries, at the Kremlin in Moscow, Russia January 17, 2025
Still, Pezeshkian delivered a message calibrated for both audiences at once.
He reaffirmed Iran as a “reliable friend” to China, echoing Supreme Leader Ali Khamenei’s priority on eastern partnerships. He also stressed Tehran’s readiness to operationalize the 25-year agreement with Beijing across energy, infrastructure, and technology.
The session with Putin amplified the signal: in Tehran’s view, China and Russia are no longer transactional partners of convenience, but strategic anchors to confront Western pressures.
Roadblocks remain
The SCO summit in Tianjin provided the showcase for this reorientation. Now a full member, Iran leaned into the organization’s language of sovereignty, non-interference, and resistance to unilateralism.
Yet the question of deliverables hangs over the pageantry.
Iran’s earlier eastward experiments, notably under Mahmoud Ahmadinejad, yielded less than the rhetoric promised. Banking bottlenecks, compliance risks for major companies, and the gravitational pull of Western markets on Chinese firms limited follow-through.
Whether today’s geopolitical alignment—and the higher stakes of great-power competition—change those cost-benefit calculations is the live test.
For Tehran, success will be measured not in communiqués but in sustained energy sales, credible financing channels, technology transfers, and visible progress on infrastructure that can withstand sanctions headwinds.
Iran's supreme leader Ali Khamenei meets top officials including president Masoud Pezeshkian and judiciary chief Gholamhossein Mohseni Ejei
Future hangs in balance
Inside Iran, the “Look East” pivot has sparked an energetic debate.
Hardline outlets herald the emergence of an “Eastern front” that validates decades of resistance to Western dominance. But reformist and moderate voices warn that the country risks swapping one form of dependence for another.
Their critique is less civilizational and more structural: if Iran becomes overly reliant on Moscow and Beijing for markets, capital, and diplomatic cover, it could re-create the asymmetries of influence that the 1979 Revolution sought to overturn.
In this reading, the pivot is a pragmatic hedge, but also a bargain that may constrain policy autonomy over time.
The central uncertainty is whether the “Look East” approach can move beyond symbolism and episodic deals to furnish the durable economic and technological lifelines Iran needs.
If it can, Tehran may blunt the effect of renewed UN measures and stabilize growth on an alternative platform. If it cannot, the pivot risks devolving into a slogan that masks deepening isolation and narrowing options.
As September advances toward the snapback deadline, Tehran stands at a genuine crossroads.
Choices made now – on access for inspectors, on the pace and level of enrichment, on the specificity of commitments with China and Russia – will shape not only Iran’s nuclear trajectory and economic survival, but also the character of its grand strategy for the remainder of Khamenei’s tenure.
The postwar debate over Israeli infiltration of Iran’s security and political system has added another layer to contentions in Tehran, with warnings and accusations directed at some hard-liners and radical insiders.
Concerns have intensified as politicians on both sides beat the drums of a possible new war following the activation of the trigger mechanism by European powers which could reimpose international sanctions by month's end.
"Infiltration of Iran’s security organizations cannot be ignored,” former lawmaker Mohammad Ali Pourmokhtar told Khabar Online on Wednesday. “It has now become clear that infiltrating agents were involved in some of the attacks on military establishments."
He stressed that infiltrators often operate from within: "They gain trust by posing as insiders, allowing them to advance their agendas … (they) often disguise themselves as true believers in the system, and sometimes as radicals."
Revolutionary Guards commander and former MP Mansour Haghighatpour echoed the sentiment. "The people should be vigilant and suspicious of those who race ahead of the revolution and chant radical slogans," he said on Wednesday.
His remark, a rare swipe at hardliners who cloak themselves in revolutionary zeal, underscored how the infiltration debate is feeding into wider factional infighting.
No official explanation
Despite such warnings, no major counter-intelligence breakthroughs have been reported beyond the swift execution of a nuclear scientist accused of betraying slain colleagues to Israel.
Instead, blame has shifted to Afghan refugees, social media vulnerabilities and figures within the intelligence community, adding more confusion than clarity.
Family members of some slain commanders said the victims did not use smartphones or social media—though it later emerged that some of their bodyguards did.
What has most stunned officials is the depth of Israel’s penetration.
Drones used in the assassinations were reportedly built or assembled inside Iran by Israeli agents, who vanished without a trace after their mission.
One reason Supreme Leader Khamenei has avoided public appearances and even meetings with insiders is his likely deep mistrust of suspected infiltrators in the security apparatus.
Pourmokhtar warned that infiltration can reach the very top: "Sometimes infiltrators operate in the deeper layers of government, figures unknown to the public, yet capable of influencing top-level decisions."
‘In whose interest?’
Last week, security chief Ali Larijani acknowledged the problem as a “serious matter,” adding that Iran “had painful weaknesses" in the war with Israel.
The debate has also spilled into parliament, where critics have accused hardliners of damaging national security by advancing extreme policies, citing a recent urgent move to pull Iran from the nuclear Non-Proliferation Treaty.
Lawmaker Ahmad Bakhshayesh Ardestani admitted: "The triple-urgency bill to exit the NPT was a gift to Trump." Abbas Goudarzi, spokesperson for the presidium, added: "Withdrawing from the NPT is a matter of governance, and the Majles cannot decide on it independently."
Reformist outlet Fararu went further, accusing parliament’s National Security and Foreign Relations Committee of driving confrontational policies.
It pointed to the committee’s push to raise enrichment levels, promote aggressive rhetoric, and even table a motion to withdraw from the Non-Proliferation Treaty—moves it said are justified as bargaining tools but fail to deter war.
"Does the committee act to ensure national security," it asked, "or does it work against it?"
Iran has once again floated the idea of replacing the US dollar with local currencies in trade with its partners, but so far the push has gone nowhere.
None of Tehran’s counterparts, including Russia, has agreed to settle transactions in national currencies, leaving Iran isolated despite years of lobbying.
At the Shanghai Cooperation Organization (SCO) summit on September 1, President Masoud Pezeshkian repeated the call.
A day earlier in Tianjin, China, he unveiled a new initiative under the title “SCO Special Accounts and Settlements,”describing it as a three-pronged plan to “reduce the effects of illegal sanctions on SCO members.”
What’s the proposal?
According to Pezeshkian, the initiative has three components:
Expanding the use of national currencies and reducing dependence on the dollar.
Establishing shared digital infrastructure and adopting central bank digital currencies (CBDCs) for faster, more secure payments.
Creating a multilateral currency-swap fund to support sanctioned members or those facing liquidity crises.
Pezeshkian argued that the plan could boost the “economic resilience” of SCO countries and turn the bloc into “a successful model for building a multipolar, fair financial order resistant to external pressure.”
Is it realistic?
The hurdles are steep.
SCO members’ national currencies lack international credibility and many are volatile. The Iranian rial has lost 99 percent of its value in the past two decades, while the Russian ruble has sharply fluctuated since the Ukraine war.
Over the past five years, all SCO currencies—except Tajikistan’s—have depreciated.
Trade imbalances add to the problem.
Chinese customs data show China’s exports to India, Pakistan, and Uzbekistan are seven times larger than its imports from them. With Tajikistan, the imbalance reaches tenfold.
China, with a $150 billion annual trade surplus with those countries, is unlikely to accept settlement in their weak currencies—and even if it did, they would be of little use in trade with third parties.
Energy trade underscores the limits further.
Of China’s $512 billion in total trade with SCO members last year, $90 billion was fossil fuel imports. About 80 percent of global energy transactions—especially oil—are conducted in US dollars. Even the euro and pound play only marginal roles.
Beyond energy, the dominance of the dollar and euro in global commerce is overwhelming: the dollar accounts for more than 65 percent of trade transactions, the euro about 20 percent.
China’s yuan makes up just 3–4 percent, mostly in neighboring countries.
The core problem
Above all, Iran remains on FATF’s blacklist, which restricts transactions regardless of currency. Whether in dollars, euros, yuan, or local money, doing business with Iran carries legal and financial risks.
For these reasons, Tehran’s latest de-dollarization push is less a practical plan than an aspirational talking point.
Currency weakness, trade imbalances, dollar dominance in energy, and Iran’s isolation from the global financial system make the proposal unworkable.
Adding to the difficulty, Washington has taken a firm line against such initiatives, warning the BRICS bloc over de-dollarization efforts and threatening more sanctions and tariffs if they advance.
Supporters hailed the plan to feature renowned vocalist Homayoun Shajarian at Azadi (Freedom) Square as a rare chance for collective joy, while critics denounced it as a state ploy to deflect from the looming anniversary of Mahsa Amini’s death in custody.
Some urged Iranians to seize the event as a protest, while hardliners at home warned it would unleash unrest.
Shajarian, son of the late maestro Mohammad Reza Shajarian, announced on Instagram that after years of denials by the Ministry of Islamic Culture and Guidance, he had finally been granted permission to hold a free public concert.
He described it as the fulfillment of an impossible dream.
“This concert is neither for anyone nor at anyone’s request. I stood with the people during the war with Israel, and now I just want to lift their spirits,” he said.
Sudden storm
Critics were quick to react.
“The Homayoun Shajarian 'concert' is not a concert—it’s a government project … Those who take part in it (under any pretext) are without question agents of the regime and its foot soldiers,” one posted on X.
Ultra-hardliners claimed the state lacked the security capacity to manage such a gathering.
Supporters countered that the city had organized vast religious rallies like the “10-Kilometer Ghadir Feast” even during the turmoil following the recent 12-day war with Israel.
Sadegh Koushki, a politician close to the ultra-hardline Paydari Front, condemned the idea, calling it a show of numbers meant to “extort revolutionary people and the Leader.”
Filmmaker Abolghasem Talebi warned the event would become “a display of nudity” and a launchpad for protests.
“A free concert in Freedom Square means lawlessness,” he said. “First Shajarian, then others. Gradually, we’ll face a coup of public squares through nudity and unveiled women—with government permission.”
Tehran's iconic Azadi (Freedom) Square lit with the three colours of the Iranian flag, July 2025
Cancellation
By Wednesday, Shajarian admitted his worst fear had come true: the concert would not take place, and his “impossible dream” would remain out of reach.
Tehran’s ultra-hardline mayor, Alireza Zakani, said security authorities had rejected the plan because of “time constraints” and lack of preparation, proposing to move it to the 12,000-seat Azadi Stadium.
Municipality officials claimed they were only informed days earlier, but the government countered that preparations had long been under discussion.
Government spokeswoman Fatemeh Mohajerani said the administration had supported the event from the start, asserting that "millions" attending would have strengthened national unity.
Administration public relations chief Ali Ahmadnia said Freedom Square remained the priority but the 100,000-seat Azadi Stadium could serve as a fallback.
Shajarian has reportedly ignored officials’ calls, and many supporters on social media say they will not attend if the concert is not held at Freedom Square.
‘Problem lies elsewhere’
The cancellation itself became a new battlefield, as critics highlighted what it revealed about the establishment’s insecurity.
Many believe the decision stemmed from fear that massive crowds would dwarf the regime’s own rallies in Freedom Square, which often struggle to fill even with free transport, food, and mandatory attendance.
Sociologist Mohammad Fazeli ridiculed the municipality’s claim of being unprepared: “Fine, give them two weeks! If they’re not lying, they can prepare. Otherwise, their problem lies elsewhere.”
Veteran reformist Abbas Abdi, writing in Ham Mihan, argued that those in power fear the people more than foreign invasion. “Domestic warmongers and hardline opposition [abroad] alike oppose peaceful, joyful gatherings,” he wrote.
“From the start, I doubted authorities would accept such a security risk,” political analyst Omid Memarian told Iran International.
“The cancellation proves the regime lacks self-confidence and reveals the depth of the rift between people and the state.”